Mr Ney faces a charge of murder over the death of Michaela Dunn, who was found with fatal stab wounds in the CBD apartment where Mr Ney had arranged to meet her on Tuesday, August 13. He has also been charged with attempted murder and wounding with the intent of causing grievous bodily harm to Lin Bo, who was stabbed in the back at Hotel CBD shortly after Ms Dunn's alleged murder.

Mr Ney faces two further charges of intentionally choking a person with recklessness and common assault, which are understood to relate to a domestic violence incident on August 7.

After the hearing, Mr Khatiz said his client would defend the charges on the grounds of mental illness.

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"He's going through a very difficult time," Mr Khatiz said.

Police allege that Mr Ney fatally stabbed 24-year-old Ms Dunn before running through the streets with a bloodied butcher's knife shouting religious slogans and stabbing 41-year-old Ms Bo. She received treatment for a non-life-threatening stab wound to her back and has since been discharged from hospital.

Mr Ney was eventually detained by bystanders who used a milk crate and a cafe chair to restrain him until he was arrested by police and taken to Royal Prince Alfred Hospital.

Police said they found a USB stick on Mr Ney at the time of his arrest which contained videos of recent mass shootings, including the Christchurch mosque attack and US attacks.

Commissioner Michael Fuller said Mr Ney had no known "links to terrorism ... [or] other terrorist organisations" but did have a history of mental health issues.